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tv   The Profit  CNBC  November 22, 2018 7:00am-8:00am EST

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lemonis: i actually have come to the conclusion that there are many moments where i think you actually set me up. amber: i would never do that. ♪ [ laughs ] ♪at you think i'm n. amber: [ laughs ] you sometimes think that you're dr. phil. lemonis: oprah is what i aspire to be, not dr. phil. i'm more on the oprah path. amber: okay. lemonis: that's why i got to place him on a seat, i'm getting closer to oprah. amber: okay, got it. is there, like, a thing under my chair? doesn't oprah do, like, the fine things? like, is there a car or a pashmina? lemonis: [ imitating oprah ] and you get a new business. you get a new makeover. in the last five years, i've visited over 70 businesses. it's delicious. [ laughter ] i travel the country trying to fix the people... christina: i don't want to be that person that cries on tape. lemonis: ...fix the process... i don't think you guys have any idea what's in your inventory.
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holy [bleep] ...and create a few products. welcome to your new store. man: oh, my god. channa: i owe my life to this company. lemonis: that is the reason that i'm here. i spend hundreds of days a year working on these companies. why didn't you do it? man #2: i thought that we did. lemonis: holy [bleep] but we can't always fit everything i'm thinking into the show. so tonight i'm gonna give you an inside look at an episode from our first season, la dogworks. did you think neil was out of line? andrew: no, not out of line, just did a stupid thing. a thing that nobody else would do. lemonis: who talks to their people that way? over the next hour, i'm gonna take you behind the scenes to share with you what i was actually thinking during filming... i need to know that you can transform yourself. andrew: okay. lemonis: let's go to work. that was maybe one of the few moments where i felt like i was dealing with a normal person. ...share some secrets... andrew: this isn't good sam, this isn't camping world. lemonis: don't bring up my business ever. andrew: i'll bring whatever i want to, okay? lemonis: because i treat my people the right way. i was fine until he did that.
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i can talk about my business and be critical of it, but you cannot. ...and give you an honest assessment of my decisions. andrew: i don't have to ask him time and time and time and time again. e-mail me the [bleeping] schedule. just do it! amber: [ groans ] lemonis: i actually really did think i could change him. my name is marcus lemonis, and this is an inside look. man #3: all right. here we go. cameras rolling. camera speed. audio speeds. all speed. all right, guys, whenever you're ready. lemonis: joining me tonight is amber mazzola, the executive producer of the show. amber: who else would join you? [ both laugh ] joining you tonight... lemonis: you could be replaced. amber: no, i can't. lemonis: you're probably right, but it's fun to say. should we watch dogworks? amber: all right. this is my favorite episode. lemonis: is it? amber: yeah. lemonis: this is your favorite episode? amber: one of them. i love this guy. i love him. lemonis: la dogworks is an upscale dog boarding facility located in the heart of hollywood, california. andrew: you're a stinky dog.
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lemonis: founded by andrew rosenthal in 2004, this 24-hour full-service center with 36 employees has everything from grooming to training... andrew: sit. lemonis: ...in a state-of-the-art indoor dog park. this business generates $1.3 million a year, but recently their numbers have started to tumble. do you remember how much it smelled? it was something -- almost like there wasn't the right filtration system in that astroturf, but it smelled like a giant urine building. amber: that was the least of our problem with this episode. lemonis: nearly 50 million households have dogs. i want a piece of that. with the right changes, i can make la dogworks profitable, and turn this into a multi-million dollar business in no time. when i pull up in front of the store, there's no signs on the outside of the building kind of detailing what goes on inside this facility. and i don't know how a customer's supposed to know what they do. andrew: marcus. lemonis: how are you, andrew? andrew: very well.
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lemonis: you got a nice place here. andrew: thanks. lemonis: so how many square feet is this whole thing, front to back? andrew: 7,500. we have boarding, grooming, daycare, training... jesse: sit. good boy. andrew: ...and we have our boutique. amber: why did we do this business? lemonis: because i like the pet industry. amber: because the pet industry is a huge industry, right? and you like the concept, though. lemonis: love, love, the concept. i thought the fact that he was able to consolidate overnight, daycare, boutique, and grooming all into one box, that was actually really smart. amber: he actually told me something that was interesting, people, even in time of disaster or... lemonis: spend more time on their pets than they do themselves. amber: time and money, right? lemonis: yeah. andrew: this is what i call the centerpiece of la dogworks. it's a 2,500 square foot indoor dog park. this is for dogs to play. lemonis: very cool. and who's that? andrew: jesse who is director of animal care. lemonis: how long has he been working here? andrew: seven years. lemonis: hi, guys. andrew: hi, george. this is marcus. lemonis: hi, guys. andrew: we call it the dog den. it's a safe haven. if you notice the bunk beds i created.
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i invented these. i'm the first person to ever do this. lemonis: you invented the bunk bed? andrew: for dogs. lemonis: okay. andrew: for use with dogs. lemonis: he doesn't actually think that he invented the bunk bed for dogs, does he? amber: yes, he does. lemonis: has he made any money selling them? amber: i don't know. lemonis: have you ever seen a dog bunk bed before? amber: no. lemonis: okay. andrew: what we do, it's a 2-story, pre-fabricated kennel system. lemonis: hey, buddy. andrew: some people have said that, you know, the chainlink, you know, my dog was in a shelter and it's gonna bring back bad memories. first of all, dogs don't think that way. the dog would never think that way. lemonis: but the first thing i thought of, i got my two cocker spaniels from a shelter, it has the same feel as the shelter, so maybe that's why people say it. andrew: well, people, not dogs. lemonis: did you think it was odd that he was, like, "it doesn't really matter that people complain about it, i'm not gonna give it to 'em." amber: andrew never cared what people said. lemonis: about anything. amber: no. andrew: we do it our way and it works really well. this is where we do training. emily is our director of training. lemonis: are you emily? emily: i am. lemonis: hey, i'm marcus. how are you? emily: marcus, it's a pleasure.
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lemonis: really nice to meet you. emily: nice to meet you, too. andrew: and zoe. emily: this is zoe. andrew: training is a very, very important part of la dogworks, which fell off greatly. lemonis: why do you think that is? andrew: you know what, la dogworks isn't for everybody. lemonis: how does a customer contact you if they have a complaint? emily: there's a website out there that people post business reviews. and we've had some negative stuff put up there, and andrew responds to it in his way. [ laughs ] amber: he's so proud of himself. lemonis: "i've been brining my dog here for six months. one night i came to pick him up, what i found was my pup wearing a muzzle tied to a wall. my own dog. i was horrified." then your response was, "after questioning the staff, i believe them and not you." andrew: mm-hmm. lemonis: you told the customer that. andrew: yeah. lemonis: why? andrew: i call it like it is. lemonis: andrew, stay the [bleep] off the internet because you're hurting your business. andrew: i don't think i'm hurting my business at all, personally. lemonis: i thought in the spirit of seeing how andrew was doing, we'd pull up some more recent yelp reviews. "the owner andrew rosenthal, should be more mindful
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of how he treats people in public." this is the comment back from andrew, "for six years, we've put up with you and your lateness and your rude dog, your disrespect, your excuses, your lies, and your walking into a respectable establishment dressed like you just rolled out of bed." amber: wow. okay. erin: hi. erin. lemonis: how are you? nice to meet you. erin: how are you? lemonis: and what do you do here? erin: i take care of the money. lemonis: she takes care of everything is what she takes care of. erin: this is april. lemonis: okay. erin: this is 2012. lemonis: so in this month, you know how much revenue you did? andrew: 120? lemonis: 109. andrew: okay. lemonis: how much did you make on 109? andrew: i have no idea. lemonis: $78. andrew: sales fell off greatly and it just hasn't blossomed to where it needs to go. erin: grooming has been underperforming. training has been lagging. our top performer is definitely boarding, and this year, boarding's off quite a bit. lemonis: what is your occupancy? andrew: what do you mean?
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lemonis: if all the runs and all the beds were occupied, you would have $1,830,000. what do you think your level of occupancy is as a percentage of your total? do you know that number? andrew: no. lemonis: the maximum revenue that the kennel system could generate is about $1.83 million if every kennel was full, every night at a stated rate. last year, the kennels generated about $500,000, so it's very simply, i just divide $500,000, which is what they generated into the amount that they should have generated, and i come up with an occupancy rate of 27%. that's not good. you're at the absolute worst possible level at 27%. erin: we're off. lemonis: what's your biggest challenge in your job? andrew: putting up with me. [ laughs ] lemonis: dealing with you? erin: that's good. [ chuckles ] lemonis: are you not easy to deal with? andrew: no. lemonis: how come? amber: i know how i want this place to run, and sometimes people tend to not follow the path. lemonis: does it make you crazy? andrew: yes. i don't walk around yelling every day,
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i walk around yelling when i need to. lemonis: which is every day. amber: up until this point, you haven't seen him go crazy yet. lemonis: i didn't need to see him scream to know that he was a little off. neil. marcus. neil: marcus. nice to meet you. lemonis: nice to meet you. what would you say would be the single biggest problem in the organization? neil: it starts at the top. it's a really dynamite facility with a well-thought out system, but i don't think andrew is rational. he has had several explosions in the past few weeks. lemonis: why would someone like you put up with stuff like that? neil: i love the animals, but i have my limits. man to man, i'm planning my exit. lemonis: you can tell the dynamic with his employees wasn't great. there's this natural tension that just exists throughout. amber: this was the first season, what makes this episode feel different to you than some of the earlier episodes? lemonis: this was episode 5. and i think in the first couple of episodes, i felt like i was not understanding how it was all going to work. i think it took me a minute to realize that we were there to fix the business.
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and that that meant that we were gonna have to deal with tough issues, confront people, be hard on them. amber: i think it was easier to do with someone like andrew because i think andrew was bad to his people. lemonis: yeah. why do you want to leave? neil: one of the biggest reasons is i got bit recently. andrew literally got in my face and yelled at me and blamed me for it. lemonis: i thought we could maybe just go in to the training room and talk. andrew: now? lemonis: is that all right? andrew: yeah, sure. amber: have you ever yelled at an employee before? lemonis: yeah, i have. but it was never to degrade them or to rip them down. and my version of yelling and his version -- my definition's probably different. i've never yelled to a.r. level. amber: andrew rosenthal. lemonis: andrew rosenthal level, yeah. i looked at 600 businesses, and i like this concept. i'm willing to write a check... andrew: mm-hmm. lemonis: ...and fund what i think needs to happen. andrew: mm-hmm. lemonis: i'm not willing to do it -- i will not do it if you're managing the people. now, you don't really necessarily like people.
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andrew: and that's a very broad statement because i really am good with people. lemonis: you're not as good as you should be as a business owner with people. andrew: maybe i don't handle my staff well, if that's what you're saying. lemonis: i'm saying that you don't handle your staff well or your customers as well as you should. amber: taking someone like andrew, that intense, toxic personality, like, that's really hard to produce. you know, he didn't want -- we would say, "okay, andrew, marcus wants to come back on thursday." "he can't come thursday." "okay, we'll try to come back on friday." "can't come on friday." he never wanted us back. so it's like... lemonis: that was hard television to make for you. amber: hard television to make, not easy. andrew: why do you want la dogworks? lemonis: 'cause i like the brand. and for me, it's creating products and services under the la dogworks brand that are scalable and that are sold in mass retail, online, and opening up multiple locations. we're only gonna open up new locations when i'm confident that this location is functioning the way it's supposed to be,
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including the morale. andrew: okay. lemonis: andrew, i'm gonna offer you $1 million. andrew: for? lemonis: i want 50% of the business. you and i are gonna be equal partners. i'm gonna control the operations of the business, and you will have no authority over the employees and you will control the brand. andrew: but this is a business that i built, that i came up with, and now i'm gonna share that with somebody who i don't know. i don't know that i want to sell 50% of my business for $1 million. lemonis: well, that's my best offer. you made $78.17 last month. do you want to take this business to the next level? andrew: absolutely. lemonis: do you want to be relieved of the burden of dealing with your people? andrew: that would be... lemonis: do you want to open more stores? i'm offering you $1 million to do that. what i care about in this moment is you and a business that i think has a [bleep] load of potential. andrew: mm-hmm. amber: this was the highest offer up until this point. lemonis: in the first season? amber: first season. i remember sitting there in video village
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with all the producers being like, "oh, my god. that's a million dollars." lemonis: well, the million dollars was actually the right number because the concept that he had created was very scalable -- the different departments, the different revenue streams, the pricing model. i actually think andrew understands the pet business very well. guy's a smart guy... except when he opens his mouth. amber: [ chuckles ] lemonis: we sat in this room for probably 3 hours. i got to hear about his girlfriend. i got to hear about his house. i got to hear about... lemonis: yeah. i'm sorry, i was just... amber: rubbing your bare leg. [ laughs ] oh, god. do you shave? lemonis: no! andrew: i trusted people to manage. that's why... erin: that's not fair. don't even go there. andrew: what are you talking about? lemonis: the dogs were even like -- look at them. amber: andrew was that personality
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unstopables in-wash scent booster ♪ downy unstopables from capital one.nd i switched to the spark cash card i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?
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they sent me to approve. amber: i could have done a better job at that. lemonis: right. that's $5 billion in sales, i think we're all right. amber: your company's great, i'm talking about the commercial. lemonis: oh. amber: [ laughs ] lemonis: what were you asking me, i'm sorry? amber: well, [bleep] now i forgot what i was gonna say. lemonis: what i care about in this moment is you and a business that i think has a [bleep] load of potential. andrew: mm-hmm. lemonis: the $1 million-offer is very simple. it's $150,000 to retire existing debt. another $150,000 to put working capital in the business. and then $700,000 for any expansion opportunities. i think that's an important thing. i think we don't do it enough is to tell people exactly what the money's gonna be spent on. amber: i agree. i think it's also important for the business owners to know because they just think sometimes you write them a check, and they just deposit it and start spending. so i think breaking it down is very helpful. lemonis: i'm gonna want to have complete control
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for the next week so that i can get the employees in line, get their process in line, and tell them that you don't make any decisions. i make the decisions. i want to fix the business. i want to transform parts of it that i think we can transform together, but i need to know that you can transform yourself. andrew: okay. lemonis: let's go to work. that was maybe one of the few moments where i felt like i was dealing with a normal person because he was acknowledging the need to fix something with himself. and so that was interesting to me, and i think a lot of it happened because it was just him and i. when there were other people around, he would tend to grandstand... amber: mm-hmm. lemonis: ...or flex his muscle or his peacock feathers or whatever it may be. and it had nothing to do with the cameras or any -- because the cameras were there when we were just the two of us. it's when it was just him and i versus him and i and his employees, and you'll see the difference here. for those of you that have not met me, i'm marcus. i wanted everybody to know that andrew and i have come to a deal. over the next week, you're going to see some significant changes, but the most important thing we're going to work on
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is management. the days of people being yelled at and demoralized and morale being this low are over. all of the staffing, morale, all of that, you guys are gonna be... andrew: that's my job. oh, sorry. lemonis: you guys are gonna be reporting in to me. all right, let's get back to work. okay? in order for me to move forward with my marketing plan, i want to see any and everything that andrew has. so andrew wanted to take me back into the garage to show me his delivery vehicle. oh, this is cool. andrew: this is the fetch mobile. lemonis: it wrapped and the whole deal. he's about to lose his mind. andrew: and look and look and look. lemonis: well, i mean... andrew: no. lemonis: it's a scratch. so a team member did that? andrew: yeah. carelessness. lemonis: it's called an accident. i mean, andrew, you do understand that things happen, right? andrew: oh, i understand but not constantly. lemonis: the question is, do you have enough patience and tolerance to educate them, to train them, to forgive them?
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andrew: i have seen my employees whittle away at the integrity of la dogworks... lemonis: what does that even mean? andrew: ...by stupidity, by laziness, by not coming to work, i mean, if i could fire the entire staff and start from scratch, i would do that, too. lemonis: so who wrecked the van? andrew: well, neil. lemonis: what do you do, just yell at him? andrew: i don't talk to neil, as a matter of fact. lemonis: why? you don't like him? andrew: i hate him. he's a prick. he's a -- i'll give you $8.50 or $9 worth of work and not a [bleep] penny more and not any more effort. okay. that's neil. [ door opens ] and then he comes up to my office yelling and screaming at me that i should have shown more compassion. lemonis: the guy's standing right there. i think what people are looking for is some level of sympathy. andrew: that's not... again, my staff has to function a right way. when neil started working here, and i told him this to his face, i had big hopes for him. lemonis: when you say that to somebody, "i had high hopes for you." andrew: neil did not hear that from me until we had a huge argument in the kitchen.
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when he got in my face with his wide eyes... neil: i got in your face? andrew: you don't remember that? neil: i don't remember it that way. andrew: well, my back was to the door and you were standing here staring me down and i said, "who the [bleep] do you think you are staring me down?" you don't remember that? neil: i remember it differently. andrew: okay, well... lemonis: did you think neil was out of line? andrew: no, not out of line, just did a stupid thing. a thing that nobody else would do. lemonis: who talks to their people that way? andrew: is there a problem? he's gonna get fired anyway. lemonis: why's that? andrew: because i [bleep] can't stand him. he's insubordinate, he's obnoxious. don't let him manipulate you because i'm telling you, he is just worthless, absolutely worthless. lemonis: who are the employees you think you've hurt the most? amber: at this moment, you probably thought, "okay, i'm here for a reason."
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lemonis: it was a bit of a head fake for me.
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lemonis: how come you didn't get your son a dog? which is why carmaxs lets you buy a car in whatever way is right for you. get pre-qualified before you ever come to the store. need some time? they'll hold a car for you for seven days with no obligation to buy. you also have access to the entire nationwide inventory. if you find the perfect car someplace else, they'll ship it to your local store. the point is, it's flexible. and that's what you want when you're buying a car.
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hi. word of advice: don't ever do this. grab those command hooks and let's make it work. a wreath on every door, lights in every room, go all out because everything comes down damage free. hallelujah! command. do. no harm.
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command. amber: my husband doesn't want one, and my 6-year-old is not gonna really take care of it. but he really wants a dog, really bad. lemonis: so if i got him a puppy for his birthday... amber: oh, my god, no, please. you'll start, like, world war iii in our house. lemonis: you want a cat? amber: no, i'm allergic. i hate cats. they're [bleep] lemonis: a hamster? amber: no. lemonis: cats aren't [bleep] amber: [bleep] they are. they have such attitudes. lemonis: just play. [ laughs ] we need to gather everybody together. we need to talk as a group, now. this is the time, this is like a group therapy session. it's impossible, andrew, for you to dismiss how these people feel anymore. you can't do it anymore. andrew: i don't dismiss. erin: you do. andrew: no, i don't dismiss. erin: i'm sorry, but you do. i'm sorry, but you do. you do. andrew: no, i don't dismiss. erin: you don't try to empathize or feel what they're feeling. everything is just, "handle it. do it. fix it."
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lemonis: erin was the only reason that people stayed there. and you find that in businesses a lot where there's one person that isn't the owner, that isn't the manager, that is the glue of the troops, and she clearly was that person. amber: yes. erin: you focus so much on what doesn't get done that it makes people feel that they're worthless. you complain about having to pay anybody anything, and people work really hard. i feel you dismiss it. it's just -- it's not... andrew: okay, you're incorrect in your feelings. i have tried and i have tried to communicate, and i'll tell you something, it doesn't work all the time. woman: they're scared of how you're gonna react. jesse: that's a big one, too, because a lot of people see you ranting, yelling at me when i'm inside the dog area, so they're just like, "oh, [bleep], i'm not gonna go talk to him." people avoid you. andrew: everybody here knows my personality, knows the way i am. i'm a reactionary, okay. i'll yell and scream and then it's fine. jesse: yeah, but i mean, for you. andrew: and that's what i need to do for my health. jesse: and for my health, i'm sorry, it's not working 'cause i'm stressed out. i go home stressed as hell, dude. i don't see my wife as much because i have to do these extra hours. you don't think i work enough. this job is really stressing me out.
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andrew: that's not true. lemonis: andrew, you got to listen to -- you're not listening. andrew: i'm listening. emily: it's our livelihood here. [ crying ] and it's just never been considered. we're working so hard. andrew: emily, what does that have to... but explain what's been going on so marcus understands. lemonis: no, no, so -- i understand. i want you to understand. andrew: no, no, no, you don't understand. emily: no, because... andrew: you don't understand. lemonis: what do you mean i don't understand? andrew: 'cause you don't know the history of what's gone on here. lemonis: the history is that the people that work here don't want to [bleep] do it anymore. that's what matters. andrew: that's the easy way out. that's the easy way out, marcus. lemonis: you know what the easy way out for all them is? what's the easy way out? woman: leave. lemonis: what's the easy way out? emily: to leave. lemonis: what's it? jesse: to quit. woman #2: leave. erin: to leave. lemonis: to leave. that's their easy way out. and then you'll be totally up [bleep] creek. andrew: now, that's ridiculous. lemonis: i'm not gonna let these people suffer because you're a [bleep] communicator. we're gonna fix it. they are loyal to you for some crazy reason, i have no idea.
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but i'm surprised they all haven't left. i felt like i was dealing with a bully. amber: that's right. you were. lemonis: and i didn't -- and that probably sparked something inside of me and said, "you're not gonna do this to them, to me, to anybody." amber: do you see bullies in business? does that... lemonis: i do. i see bullies in business where people leverage their authority to just roll people over or they intimidate them or they do it with fear. and i think andrew felt like he was above everybody else. amber: right. lemonis: he wanted to be the top dog -- literally and figuratively. guys, thank you. erin: thank you. lemonis: okay. andrew, you've got to work on this. andrew: mnh-mnh, mnh-mnh. lemonis: yes, you do. no, you do. andrew: no, because i'm not -- i'm not gonna let them feed you a bunch of [bleep] no, no, no, no, no. i created this business, and i showed everybody how to do it. this is my happiness. lemonis: i'm gonna make you the best business owner that's ever lived... andrew: thank you.
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lemonis: ...but you have to shut up once in a while and let them just talk. andrew: it's so difficult for me, i'm sorry. lemonis: it is, but what's the disadvantage of letting them get it out? can i have a few minutes by myself, please? andrew: sure. ♪ lemonis: this guy's a [bleep] lunatic. amber: did you think that you could really change this guy? lemonis: i actually really did think i could change him, honest to gosh. as much as we laugh and we sort of chuckle back on this, and i think that's why i hung in there. amber: you've heard the old saying that you can never change people. lemonis: you can change people if you understand the root that sparks the behavior. there may be moments where it comes back, but you start to change the reason for him to react that way. where's jesse? woman: he's not here. lemonis: he's off today? i came into the business this morning
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hoping to have a fresh start, hoping to really develop all these great plans. instead, i walked into some really big problems. andrew: jesse quit. he was having a conversation with erin and got up and quit. i made a decision... lemonis: what happens if all these people quit? andrew: then we hire new people. lemonis: andrew, you're still struggling to see that these are people. you're managing them like servants, and without them, we're closed. he doesn't have any regard for people. and he thinks about them as commodities, that they can come and go and it doesn't matter. the dogs were even like -- look at them. erin: let's talk about jesse for a minute. andrew: okay. erin: can we have jesse come in, sit down, and talk about all this? andrew: why? erin: because i think it's unfair that he left without having a chance to say anything. andrew: jesse has e-mailed me the schedule three or four times in the entire time he's worked here, okay.
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he refuses to do it. erin: he's been a dedicated employee... andrew: he hasn't been. erin: yes, he has. andrew: he has not been. erin: yes, he has. andrew: dedicated to who? who is he dedicated? not me. jesse failed miserably. he wouldn't listen to a [bleep] thing i said. i don't have to ask him time and time and time and time again. e-mail me the [bleep] schedule! just do it! erin: that's the answer to everything, "just do it." andrew: well, just do it. when you do it, do it. erin: and again, we've had this talk, the false threats, this and that and yelling and screaming gets nowhere because people don't take it seriously. andrew: and i trusted people to manage. erin: that's not fair. andrew: what are you talking about? erin: don't even go there. andrew: i'm not going anywhere. erin: that's a waste of -- [bleep] you. amber: so many times we come into people's businesses and they're, like, aware of the cameras or they're afraid of the cameras, it takes a couple days to sort of ignore the cameras. for andrew, he just was that personality whether the camera was rolling or not rolling. lemonis: he never had any self-awareness, which is, i think, an asset to make a television show and a liability
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to run a business. amber: right. lemonis: like, you have really good self-awareness. you are conscious of other people's feelings. amber: i would say. lemonis: and you're conscious of the reactions, except mine, i mean, you don't necessarily use it with me. amber: are you done? lemonis: see? you're not even concerned. if your business is in trouble and you need my help, log on to theprofitcasting.com. amber: wait. if you're waiting patiently for a liver transplant, it could cost you your life. it's time to get out of line with upmc. at upmc, living-donor transplants put you first. so you don't die waiting. upmc does more living-donor liver transplants than any other center in the nation. find out more and get out of line today. and all thro' the house. 'twas the night before christmas, not a creature was stirring,
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uh-huh, okay, no, that's the antenna. i didn't know what was happening. i'm not used to having wires up my shirt. lemonis: a microphone? amber: yeah. lemonis: this is not "the matrix," you're not all wired up to jump from a building. amber: there's like a wire and an antenna, it just feels weird. lemonis: okay, well, let's stay focused. amber: okay. lemonis: i'm very excited about all these ideas that we have for la dogworks, but i continue to be concerned about andrew's behavior. when i get voicemail messages that sound like this... neil: hey, marcus, this is neil. i'm calling to ask if you can hire me into one of your other businesses, i don't even care, whatever you got. the stress and harassment level are just getting to be overwhelming at dogworks. lemonis: so, i decided to bring in dr. rivera, a workplace psychiatrist. i've worked with her in the past, and she's been very successful at helping create common ground between employees and owners. ♪
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dr. rivera: hi, marcus. lemonis: how are you, dr. rivera? dr. rivera: how are you? lemonis: good to see you again. dr. rivera: good. how are you? how's everything? lemonis: [ sighs ] dr. rivera: big sigh. lemonis: yeah, this is a big challenge. let me give you a little tour, introduce you to a few people. dr. rivera: okay. yeah. lemonis: isn't this beautiful? dr. rivera: wonderful. yeah. andrew: hi. dr. rivera: how are you? andrew: i'm andrew. dr. rivera: i'm erica. andrew: hi, erica. dr. rivera: nice to meet you. andrew: my pleasure. lemonis: andrew, this is dr. rivera. she's worked with me in other companies in trying to help bring people together because i'm certain... andrew: [ laughs ] i'm kidding. lemonis: i thought maybe the three of us can go back and chat. andrew: sure. lemonis: i think my biggest concern is to help him manage people, it's not a thing that he loves to do. the idea of bringing in an outside person in this particular instance was more for me to see how andrew reacted and how he would listen if he wasn't gonna listen to me. amber: but in general, you don't like bringing in outside people? lemonis: no. amber: why? lemonis: unless they possess something like a doctor of psychology, a nutritionist.
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but for the rest of it, it's like, "i got it." and you want to just, "oh, bring in everybody." "i got it." this isn't "extreme home makeover." andrew: employees have been the bane of my existence. dr. rivera: okay. and i hear you say, "bane of your existence," and in our discussions, we think about employees actually being the key to a successful business. your employees need to know that you trust in them, value them, and believe in them, or it's gonna cost you. in the bank, it's gonna cost you. lemonis: there's one person here that i thought it would be helpful for him to be brought into the equation for you to interact with him in his presence and to watch the visceral reactions that bubble from both. dr. rivera: right. lemonis: because if andrew can learn to work through this particular one, i think he's got the potential for being an amazing, amazing business owner. this is neil, buddy of mine. dr. rivera: hi. hi, neil. it's nice to meet you. so, andrew, can you tell me
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what qualities you see in neil? andrew: i don't see anything in neil now because he doesn't exist. amber: he doesn't exist. andrew: we had a falling out and i wouldn't say i'm a grudge holder, but i'm a grudge holder. dr. rivera: so what's been going on with you and andrew? neil: well, it's an incident. i got bit by a dog, this dog started charging out of the run. my first instinct was protect this dog from running down the street. and the dog latched on to my arm and literally he said to me, "well, look how you're handling the dog." and i was like, you know, i mean, it's just damage control. andrew: i said, "what are you doing," is what i said. dr. rivera: neither of those statements, anyway, to me sound like they have any level of concern in your employee's health, though. let's be honest, right? this is important because, neil, you felt you weren't being taken care of by your employer. neil: well, when you work in a place like this, biting can be inevitable with that many dogs, but it's just how you handle it. i went up into the office and i said, "next time i get bit, please show some compassion." at that point, he started screaming at me
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and was being so toxic and hostile in my face. andrew: that's not what happened, at all. he was very angry. lemonis: he just got bit, dude. andrew: ...really challenged me in front of people. and i said, "what is your problem?" and he goes like this. neil: oh, my god. andrew: not, "oh, my god." not, "oh, my god." neil: i did not get in his face. this is the energy that i had when he was screaming the "f" word in my face. "what the [bleep]..." there was no stopping him. andrew: that's not what i said, you freakin' moron. lemonis: he just did it again. [ sighs ] amber: andrew can't even play cool even when an expert comes in. he can't even try... lemonis: he can't even fake it. ...to fake it, right. lemonis: no, he has no filter. amber: no filter.
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save on hundreds of deals.get. deals on tv's! deals on toys! deals on xbox and more! doors open tonight at 5pm, only at target. dr. rivera: you just threw a pretty rough insult at neil. andrew: that's -- i don't care. i have heard more stories about neil and neil complaining about this and calling me names that i'm quitting and he's out of his [bleep] mind and nah, nah, nah, nah, nah. you say the wrong thing to him and it's, "holy [bleep]" dr. rivera: i'm thinking that probably isn't the first insult you've gotten, neil. neil: no. dr. rivera: so i'm wondering, "wow, neil, why are you here?" andrew: he told me he was quitting. dr. rivera: are you waiting for that? andrew: i'm not firing him. dr. rivera: why not?
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andrew: because i don't deal with him every day. he does his job. he adds value as an employee. dr. rivera: okay. so you don't have an intention of firing him? andrew: i never did. dr. rivera: you don't need to use marcus' words, you use your own words. neil: i'm concerned that we're way behind with dinner. lemonis: all right. let's go ahead. i'll help you with dinner, neil. talk to andrew. amber: were you surprised to hear andrew actually say that he was never gonna fire him, that he did his job? lemonis: oh, no, he got fired after the show aired. amber: wow. andrew: slack, slack, slack. how many times do i have to ask somebody to do something? it's got to stop. dr. rivera: one of the important things i heard was marcus talk about the qualities he sees in neil. i feel like you really need to hear that. andrew: i see qualities and i've told him i've seen qualities in him. dr. rivera: let's hear it. andrew: i see qualities in you. and i told you that. dr. rivera: come a little closer, neil. andrew: that's enough. dr. rivera: that's not enough. andrew: that's over the line. dr. rivera: that's great. andrew: stop it. neil: is this what you want? andrew: stop. stop. if you put your arm around me, you're doing it
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because you really mean it. that you really want to make amends. if you really want to make amends, i can deal with it. neil: okay. andrew: okay? i'm willing to open myself up to you if you're willing to open yourself up to me. neil: okay. andrew: do you want to shake hands? neil: yes. amber: i think andrew, honestly, in his weird, messed up way, i think andrew really did care for neil. i just think it was... lemonis: he had a funny way of showing it. amber: ...he just had a very funny way of showing it. lemonis: yeah, i agree with that. andrew: i am exhausted. after la dogworks opened, so many people came up to me and said, "you did it." everybody pitched in, everybody pulled their weight, i mean, it was really a beautiful thing. somewhere, things fell apart after that. lemonis: who are the employees, if you had to guess, who are the employees you think you've hurt the most emotionally, in reflection?
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andrew: [ sniffles ] lemonis: i want you to reconcile with the people that matter. andrew: absolutely. amber: at this moment, you probably thought, "okay, i'm here for a reason. like, i'm getting to this guy." lemonis: it was a bit of a head fake for me. amber: 'cause you thought he was... lemonis: 'cause i thought he was turning. amber: ...turning, yeah. lemonis: his recognition of his behavior was better than any painting or renovation or any new product could ever accomplish. amber: so the lesson you're teaching people here is just a lesson in people... lemonis: humility. amber: ...and management... lemonis: and humility. amber: ...and humility. ♪ andrew: that's my dog. lemonis: between what happened with dr. rivera and his breakthrough with neil, i'm now watching him actually pitch in. and i think he realizes that if he does the job of the rest of his employees,
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he'll have a better appreciation. erin: elise needs water. andrew: elise needs water? erin: yeah. andrew: jabba coming in. go on. lemonis: now that things are starting to look up and i'm noticing a change in andrew's attitude, i wanted to take him out front and show him some of the changes that i've made to the front of the store. the building has been repainted. all that's still there today, by the way. woman: it says grooming. lemonis: grooming and training. woman: looks very nice. lemonis: the lighting's all working. the flags are all up. it looks good. andrew: i think it's brilliant. lemonis: did you see the logo inside? let me show you that. this logo that was made came out great, don't you think? woman: this is very beautiful. andrew: i love it. andrew: that's great. lemonis: i think that is a spectacular logo to be on the business cards for the grooming department. i mean, it's fantastic. woman: it's beautiful. lemonis: it wasn't about the renovation, it wasn't about the aesthetics, it was about taking these individual department managers
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and having them feel like their department was important, and that it wasn't just about la dogworks, it was about the grooming department or the training department, and having people feel like their individual revenue stream was good enough to be on the marquee. amber: acknowledged. lemonis: look, in the last week, we've done some things, at least we've tried to. we've painted the front of the store, we've rebranded the retail store, we've worked on ways to improve the efficiency of the grooming department. look, we're at the point where andrew needs to get very focused if his business wants to survive. one of the things that i wanted to do is talk to you about the boarding. i had an idea that may or may not work, but if we went to animal shelters in the greater los angeles area and we said, "for every individual or family that adopts a pet, your first grooming or your first training or your first boarding is complementary. that's our gift back to you for loving dogs as much as we do." although it's a great thing to do for the community, it's also a great way for people to come in. i would call it a loss leader.
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does that make sense? andrew: mm-hmm. yeah, you're absolutely right, but this has all been discussed before. it's all been planned before and it was attempted, follow through. i can't ask somebody 10 times, 20 times to do something when people aren't following through. lemonis: i'm not sure i understand. andrew: there are employees that work here, okay, and a lot of them aren't meeting the mark. lemonis: okay. i don't get it. andrew: i can make this business work with or without you. this isn't good sam, this isn't camping world, this isn't... lemonis: you know why it's not? because if this was good sam or camping world, your [bleep] would be out of here. i can talk about my business and be critical of it, but you cannot because your [bleep] is a mess. amber: clearly. andrew: there are employees that work here, okay,
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and a lot of them aren't meeting the mark. lemonis: okay. i don't get it. andrew: the people that need to go, need to go. the people that are causing the problems need to go. lemonis: how do you feel about that? erin: i'm just listening for right now. i'm not sure what to say at this point. andrew: if i have to come up with new rules every day to get people to function properly, that's wrong. lemonis: no, it's called the evolution of business. andrew: that's wrong. no, no, no, no. lemonis: things change. andrew: no. lemonis: so your solution is to get rid of all the people because they all suck. andrew: what people?
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the staff? lemonis: us people. andrew: [ laughs ] i'm not a moron. and i can make this business work with or without you. this isn't good sam, this isn't camping world, this isn't... lemonis: you know why it's not? because if this was good sam and camping world, your [bleep] would be out of here. so please don't bring up... andrew: why don't you let me finish. lemonis: ...my business. don't bring up my business ever. andrew: i'll bring whatever i want to. lemonis: because i treat my people the right way. that was it. that was the one thing. i was fine until he did that. amber: i'm just surprised that out of everything he said, it was, like, the camping world and the good sam thing. lemonis: because that's my baby. i can talk about my business and be critical of it. my customers can do it, but you cannot. amber: right. lemonis: because your [bleep] is a mess. amber: [ laughing ] clearly. lemonis: you don't know how to treat people. andrew: oh, yeah, i do. lemonis: no. andrew: okay, i have changed. lemonis: oh, my god. andrew: okay. i have changed. i know what i have to do, and i know what i have to see happen here in order for la dogworks to stay...
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erin: oh, my god, you don't, though. you keep saying that over and over and over again. all i've heard for the last year is about getting rid of this, that, and the other, andrew, and you've never done it. i'm sorry, you've never done it. and you lambaste a lot of hardworking people who come in here and they work their asses off. there are a lot of good people who work here. everybody ensures the safety and well-being of these dogs every day. andrew: that's [bleep] erin: a lot of great staff have come through here and a lot of great people who have left because of you. andrew: because of me? erin: because of you. andrew: not true. nobody's left for that reason. erin: you are so full of [bleep] i'm sorry. andrew: you're in such denial. erin: no, i'm not. andrew: you are. erin: you are in denial, my friend. no, you are. andrew: absolute [bleep] you know, i'm not in the mood to do this right now. you with me? are you with me? amber: that stare. andrew: are you with me? that doesn't do anything for me, okay? ♪
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i had a partner many years ago. the only reason my partner is alive is because murder is illegal. okay? so, i don't do well with partners. i don't think i'm a bad person. i don't think i'm a bad boss. i just -- i have animals, you know. it's not like i own some [bleep] camping world. you know, camping store where somebody puts the tents where the skis are, nobody's gonna die, nobody's gonna get sick, and nobody's gonna get hurt. so, it's a big difference. anyway, we're on camera right now, i just noticed. lemonis: this level of unpredictability is too scary. i can't move forward and do business with somebody that cannot treat his people right. so i'm gonna get into my orange car and drive away. amber: i'm gonna get into my jaguar and hit pch. lemonis: the million-dollar offer that i made to andrew, that deal's off the table. i won't be a part of it.
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amber: you didn't ever have a proper goodbye with andrew. you just kind of, like, gave him the stare-down from hell and then just walked out. lemonis: i didn't feel like there was anything to say after i thought he had turned the corner. i mean, what else was there to say? it's like a bad breakup. amber: have you ever talked to andrew since you walked out at that moment? lemonis: no. i think i got some text messages from him after the show aired that said it was a total fabrication. amber: well, that's the thing that no one ever understands, really, the cameras really never lie, right? lemonis: truth came out. i consider this episode a failure for me, not a failure for andrew. amber: why, 'cause you couldn't change him? lemonis: because i had a goal, and that goal wasn't met. throughout these episodes, throughout the last five years, i always saw this as a vehicle to communicate to a large group of people to attempt to change the way they think. amber: right. lemonis: like, i've always wanted to be a teacher,
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but if i was a teacher, i'd have a class of 30, not a class of 2 million. amber: yeah. lemonis: yeah. awesome. want to come over tomorrow and watch another one? amber: is this your home, the green screen? lemonis: i don't know where my home is because of you. amber: [ laughs ] ♪ lemonis: what? what are we doing? amber: [ laughs ] amber: popcorn. lemonis: what about it? amber: it's the episode. if i get started with this, i would eat all of this, like, in one sitting. lemonis: no, you won't eat the sweet one. it's too sweet. amber: okay. yes, i would. lemonis: is this skinnypop? amber: you mean it's planet popcorn? lemonis: no. you know how i know it's not planet popcorn? her popcorn was bigger. amber: oh, really? lemonis: uh-huh. that's one thing that i did learn from sharla is that she used the right kind of corn. in the last 5 years, i visited over 70 businesses. it's delicious. -[ laughs ] i travel the country trying to fix the people... woman: i don't want to be that person that cries on tape. lemonis: ...fix the process... i don't think you guys have any idea what's in your inventory. holy [bleep]. ...and create a few products.

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